By Christoph Steitz

FRANKFURT, (Reuters) – Siemens Energy is intensifying efforts to integrate the wind turbine business Siemens Gamesa. This comes after last week’s share price drops and profit warnings exposed weaknesses in its current ownership.

Two people with knowledge of the matter claimed that the company is working with advisors to determine the best way to acquire the 33% remaining Siemens Energy stake in Siemens Gamesa.

Christian Bruch, the CEO of Siemens Energy, is facing pressure to unify his ownership. He was a part of a Siemens spinoff in 2020 which gave him majority control but little ownership.

According to one person, the deal could be done by summer. He referred to the potential risks for Siemens Energy. Siemens Energy has been forced to lower its outlook three more times in the past nine month to account for guidance downgrades at Spanish-listed Siemens Gamesa.

Siemens Energy is currently weighing the possible impact of an acquisition on its balance sheets and investment grade ratings, according to people. They also suggested that one alternative would be to buy stock rather than cash in order to reduce the need for new capital.

They said that no final decision was made in the matter, and they did not guarantee that any deal would be reached.

Siemens Energy and Siemens Gamesa were unable to comment.

Deutsche Bank (DE:), in a statement this week, stated it believed there was a 50% chance Siemens Energy would purchase Siemens Gamesa’s minority shareholders at 21 euro per share. That would be a 4.7 million Euro ($5.3 Billion) offer.

Even though that premium would amount to around a third of current prices, Siemens Gamesa’s shares are nearly half as high and at their lowest point since mid 2020, which makes a takeover less expensive, according to people.

Siemens Gamesa was established in 2017 in order to be more competitive in the rapidly-growing, but highly competitive, wind turbine market. However, it is currently facing supply chain problems and increased costs due to a new product in its offshore division.

($1 = 0.8868 euros)